Cardano Looks To Be Forming Into A Bullish Pattern

Cardano (CRYPTO: ADA) is trading higher Friday, along with the rest of the bullish crypto market. The coin has been trading in what technical traders call a cup pattern and may possibly become a handle.

Cardano was up 15.37% at $2.04 last check Friday.

Cardano Daily Chart Analysis

While Cardano has been flying lately and forming into what technical traders call a cup pattern, the crypto may cool off and form a handle in this pattern.
The crypto trades above both the 50-day moving average (green) and the 200-day moving average (blue), indicating recent sentiment has been bullish.
These moving averages may both hold as an area of support in the future.
The second side of the cup pattern started forming after Cardano started moving upward the past couple weeks. Likely after this large rip, the price will consolidate for a time in what technical traders call the “handle” part of the cup.
The Relative Strength Index (RSI) has pushed much higher the past couple of weeks and now sits at 86. This means recently there have been many more buyers than sellers.

What’s Next For Cardano?

Bullish traders want to see Cardano move higher, but also want to see consolidation. Consolidation while the crypto holds its gains allow it to possibly see another upward move.

Bearish traders are looking to see Cardano start falling. Bears are looking for a sharp downturn on the crypto. Bears are also looking to see the RSI fall lower and for the price to cross below the moving averages.

Market News and Data brought to you by Benzinga APIs

To add Benzinga News as your preferred source on Google, click here.